Franklin Templeton, a global investment behemoth, has praised the development and growth of Base, the Coinbase-incubated Ethereum L2. On social media, the company declared that Base had “hit a home run” due to its popularity with meme coins and socialfi applications, including the pioneering app in the space, Friend.tech.
Franklin Templeton Praises Base’s Performance, Comments on Socialfi’s Allure
Franklin Templeton, a global investment behemoth with over $1.4 trillion in assets under management (AUM), has commented on the popularity of Base, an Ethereum L2 incubated by Coinbase, and how it has served as home to several Socialfi apps.
Socialfi refers to apps combining social media and finance, letting users tokenize and monetize their likeness and use it to socialize with other users. Base hosts the pioneer project in this field, Friend.tech, which recently airdropped its friend token to users. The project has reached a market capitalization of over $200 million.
Franklin Templeton believes this project, alongside similar apps and meme coins, has dynamized Base, allowing it to contain almost 50% of the Socialfi movement in crypto. Furthermore, the amount of stablecoins held in the rollup has also increased, with USDC’s supply reaching over $2.5 billion. Coinbase offers free USDC transfers in Base with its in-house Coinbase Wallet, enticing users to get on Base.
The firm stressed that Base had “hit a home run” in Socialfi’s world, qualifying this category as a “key vertical” to watch for Base’s adoption and growth. Amalgamating all these factors with the support of Coinbase puts Base in a privileged position in the Ethereum rollup arena.
Franklin Templeton acknowledged this, assessing that “Base has a strong combination of Socialfi and direct integration with Coinbase users, positioning itself well to capture a material share of Socialfi activity.” The firm concluded that Base will remain a leader in the Ethereum L2 sector.
Base is currently the third-largest Ethereum rollup behind Arbitrum and Optimism, holding over $5 billion in total value locked (TVL).
